The compound interest for two years at 12% per annum is ₹477. What is the Principal amount(in ₹) invested?

1875

From the formula for compound interest, we know,

C.I = P(1+$\frac{R}{100})^t$– P

477 = P [ 1 + \(\frac{12}{100}\) ]² - P

477 = P [ \(\frac{28}{25}\) × \(\frac{28}{25}\) - 1 ]

477 = P [ \(\frac{ 784}{625}\) - 1 ]

477 = P [ \(\frac{ 159 }{625}\) ]

477 = P [ \(\frac{ 159 }{625}\) ]

P =  Rs.1875